Tag Archives: grains

Grains end mixed on Friday, but Troy Nielson with Smart Yield looks at the week’s trade. Overall corn and soybeans continue to hold record prices given the seasonality of harvest. This could give farmers a chance to sell grain into a strong market, but there is the lingering question of basis. Nielson looks at basis and the spreads to help explain what the current market is encouraging farmers to do.

Nielson also reflects on last week’s WASDE report and some of the data that may have been overlooked in the wild ride immediately following the report.

Catch the full episode here:

  • Fundamental news is bullish
  • Funds position on the December cattle-risk off attitude
  • Election still has a “hold” on the markets
  • Why are cash bids so low?
  • Is the stock market worried about the election?
  • Seeing a decline in the grade…does that mean we are getting current?
  • How are weights?
  • Fund liquidation vs. good fundamentals
  • Hogs…continue to have export news to China
  • Tech picture on the hogs looks good
  • Hogs vs. cattle in the trade
  • Oct hogs go off the board tomorrow
  • Farmers selling beans…did it happen to soon?
  • Grain summary is China.
  • Harvest clips along

 

Thursday brought about another strong day of gains in the grain market. Soybeans continue to hold well over the $10 mark. Looking at a continuous chart that puts soybeans back towards highs not seen since early 2018 before the US China trade war kicked off. Kyle Bumsted with Allendale Inc. believes this now give farmers a unique opportunity to go back and visit their marketing strategy. 2019 has been a year that farmers have seen plenty of government payments, but now the market seems to be giving opportunity to market at a profitable level.

Bumsted also gives strong insight into why the feeder cattle corn spread may be nearing it’s useful end. Rather feeders are looking at the cash difference between the fats getting on the truck and the lightweights coming off the truck. Finally there is the lean hog market that really caught fire on Thursday. Could it be starting to get top heavy or is there more room to go higher?

You can hear all of Bumstead’s comments here: